s) Provisions and Contingent Liabilities
A provision is recognized if as a result of a past event, the
Company has a present obligation (legal or constructive)
that can be estimated reliably and it is probable that
an outflow of economic benefits will be required to
settle the obligation. Provisions are recognized at the
best estimate of the expenditure required to settle
the present obligation at the Balance Sheet date. If the
effect of time value of money is material, provisions are
discounted using a current pre tax rate that reflects,
when appropriate the risks specific to the liability.
A contingent liability exists when there is a possible
obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non
occurrence of one or more uncertain future events not
wholly within the control of the Company or a present
obligation that arises from past event where it is either
not probable that an outflow of resources will be
utilized to settle the obligation or a reliable estimate
of the amount cannot be made. Contingent liabilities
do not warrant provisions but are disclosed unless the
possibility of outflow of resources embodying economic
benefits is remote. Contingent assets are neither
recognized nor disclosed in the Financial Statements.
However, when the realization of income is virtually
certain, then the related asset is not a contingent asset
and its recognition is appropriate.
The Company uses significant judgements to assess
contingent liabilities. The Company faces litigations
and claims from various authorities and parties which
are connected with a degree of uncertainty. Such
litigations comprise complex issues which can only
be resolved over extended time periods. Accordingly,
the assessment of whether an obligation exists on the
Balance Sheet Date as a result of an event in the past
and whether a future cash outflow is likely and the
obligation can be reliably estimated, largely depends
on estimations by the Management including past
precedents based on similar facts, opinions and
consultation with experts handling the litigations and
similar other weighing factors.
t) Research and Development
Research costs are expensed as incurred. Product
development costs are capitalised when technical and
commercial feasibility of the products is demonstrated,
future economic benefits are probable, the Company
has an intention and ability to complete and use or
sell the product and the cost can be measured reliably.
In other cases, such development costs are taken
to the Statement of Profit and Loss. The costs which
can be capitalised include the cost of material, direct
labour, overhead costs that are directly attributable to
preparing the asset for its intended use.
u) Rounding of Amounts
All amounts disclosed in the Standalone Financial
Statements and accompanying notes have been
rounded off to the nearest lakhs as per the requirement
of Schedule III of the Companies Act, 2013 unless
otherwise stated.
v) Dividends
Dividend proposed is recognised in the period in
which interim dividends are approved by the Board of
Directors or in respect of final dividend when approved
by shareholders.
w) Borrowing Cost
Borrowing costs directly attributable to the acquisition
or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs
are charged to the Statement of Profit and Loss for the
period for which they are incurred.
x) Government Grants
Government grants are not recognised until there is a
reasonable assurance that the Company will comply
with the conditions attached to them and the grants
will be received.
Government grants related to expenses, are recognised
in the Statement of Profit and Loss on a systematic basis
over the periods in which the Company recognises
as expense the related cost for which the grants are
intended to compensate.
Government grants related to income under State
Investment Promotion Scheme linked with Goods
and Service Tax (GST) payment, are recognised in the
Statement of Profit and Loss on the event they become
receivable.
Government grants related to an asset, are recognized
on a systematic basis, over the expected useful life
of the related assets. MOOWR benefits arising from
deferment of Custom Duty and Goods & Services Tax on
import of capital goods under Manufacturing & Other
Operations in Warehouse Regulation (MOOWR) Scheme
are netted off from Property, Plant & Equipment.
y) Royalty
The Company account for royalty in accordance with the
relevant licence/technical collaboration agreements.
z) Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new
Standards or amendments to the existing Standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. For the year ended
31st March, 2025, MCA has notified Ind AS-117 "Insurance
Contracts" and amendments to Ind AS-116 "Leases"
relating to sale and leaseback transactions, applicable
to the Company w.e.f 1st April, 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.
Description of Reserves
a) Capital Reserve: Capital Reserve represents reserve of the Company which is not available for distribution as dividend.
b) Capital Redemption Reserve: Capital Redemption Reserve is reserve created on redemption of preference shares.
c) Securities Premium: Securities Premium represents excess amount received by the Company over the face value of its shares
to be utilised for specific purposes only as per Section 52 of the Companies Act, 2013.
d) Amalgamation Reserve: Amalgamation Reserve is reserve created on amalgamation of erstwhile Float Glass India Limited
with the Company.
e) General Reserve: General Reserve is free reserve of the Company which is kept aside out of Company's profits to meet
future requirements as and when they arise. The Company had transferred a portion of the Profit After Tax to General Reserve
pursuant to earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the
Companies Act, 2013.
f) Retained Earnings: Retained Earnings are the accumulated profits of the Company after reduction of dividend and Income
tax on dividend.
g) Other Reserves - FVTOCI: Other Comprehensive Income represents actuarial gain/loss on remeasurement of defined benefit
obligation and fair valuation of Investments.
* The Company has been advised that the demands are likely to be deleted and accordingly no provision is considered necessary.
** Contingent Liability-Custom Duty include:
The Company has received several show-cause/demand notices from Custom Authorities alleging mis-classification of imported items.
The Company is vehemently contesting such notices on legal grounds through expert consultants, and in the past in similar cases,
such matters have been decided in favour of the Company. The Company is in the process of filing appeals/writ petition against the
above notices. Therefore, the Company does not foresee any significant liability on such matters. Some of the above notices pertain to
overlapping demands of Rs.15377 Lakhs, which has been excluded from the above.
*** As on 31-03-2025, the Company has a Contingent Liability of Rs.17123 Lakhs towards Custom Duty and Goods & Services Tax for
capital goods imported under Manufacturing & Other Operations in Warehouse Regulation (MOOWR) Scheme. The Company's liability
towards such Custom Duty and Goods & Services Tax shall be contingent upon at the time of filing of Bill of Entry for home consumption.
The event of such contingency occuring is remote.
Notes:
i) The Company's Operating Segments are established on the basis of the information that is evaluated by the "Chief Operating
Decision Maker" as defined in Ind AS 108 - Operating Segments in deciding how to allocate resources and in assessing performance.
The segments have been identified taking into account nature of products and services,production processes,risks and returns
and the internal business reporting systems.
ii) For management purposes, the Company is organised into two major operating divisions - Automotive Glass and Float Glass.
These divisions are the basis on which the company reports its primary segment information.
iii) All segment assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by
the segment and consist primarily of fixed assets, inventories, trade receivables, advances and operating cash and bank balances.
Segment liabilities include all operating liabilities and consist primarily of creditors and accrued liabilities. Investments, tax related
assets, loans and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as
unallocable.
iv) Segment revenues and segment results include transfers between business segments. Pricing is decided by marketing and logistics
department. These transfers are eliminated on consolidation.
v) Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable
to the segments. They do not include interest income on inter corporate deposit and interest expense.
vi) There are no Non Current Assets located outside India.
vii) Revenue derived from a single external customer amounting to more than 10% of the entity's revenue attributable to Automotive
Glass Segment ' 65693 Lakhs (Previous Year ' 57189 Lakhs).
39. Financial Risk Management
The Company's activities expose it to foreign currency risk, liquidity risk, interest rate risk and credit risk. In order to minimise any adverse
effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and
foreign currency/commodity swaps are entered into by the Company to hedge certain foreign currency and commodity exposure.
Derivatives are used exclusively for hedging and not as trading or speculative instruments.
The Company is exposed to the following risks from its use of financial instruments:
a) Credit Risk
b) Liquidity Risk
c) Foreign Currency Risk
d) Interest Rate Risk
Fair Value Sensitivity Analysis for Fixed-Rate Instruments
The Company's fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since
neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.
Cash Flow Sensitivity Analysis for Variable-Rate Instruments
A change of 50 basis points in interest rates at the reporting date would have increased/(decreased) profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
The analysis is performed on the same basis for the previous year.
b) Fair Value Hierarchy
This Section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
Financial Statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company
has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each
level follows underneath the table.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques
as follows.
Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes investments in quoted equity
instruments. Quoted equity instruments are valued using quoted prices on recognised stock exchange.
Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level
3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted
pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer
quotes of similar instruments. This level includes derivative MTM assets/liabilities. Fair value of derivative assets/liabilities
such as interest rate swaps and foreign exchange forward contracts are valued using valuation techniques, which employs
the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap
models and present value calculations.
There have been no transfers in either direction for the years ended 31st March, 2025 and 31st March, 2024.
The fair value of the financial assets are determined at the amount that would be received to sell an asset in an orderly
transaction between market participants.
42. Capital Management
The Company's objectives when managing capital are to:
safeguard its ability to continue as a going concern, so that it can continue to provide returns for Shareholders and benefits for
other Stakeholders and maintain an appropriate capital structure of debt and equity.
The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through
prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial
markets so as to maintain investors, creditors and markets confidence and to sustain future development of the business. The
Board of Directors monitors the return on capital, which the Company defines as result from operating activities divided by total
Shareholders' equity. The Board of Directors also monitors the level of dividends to Equity Shareholders.
Under the terms of major borrowing facilities, the Company is required to comply with the financial covenants as may be prescribed
by the lenders. There have been no breaches in the financial covenants of any interest bearing borrowings.
The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally
used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.
The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long term
and short term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that are managed as
capital. The gearing ratio at the end of the reporting period is as follows:
50 No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under
the Companies Act 2013), either severally or jointly with any other person, that are repayable on demand or without specifying
any terms or period of repayment except loans of '9778 lakhs to 3 subsidiary companies at the Balance Sheet date.
51 The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the Rules
made thereunder.
52 a) Government Grants represents Incentives/Subsidies under State Investment Promotion Schemes of ' 2010 Lakhs (previous
year NIL).
b) Power, Fuel, Water & Utilities are net of subsidy received, under State Investment Promotion Schemes of ' 712 Lakhs (previous
year ' 600 Lakhs).
53 Exceptional Item represents Profit on sale of Non-Current Investment in the shares of TGPEL Precision Engineering Limited, an
Associate of the Company.
54 The quarterly returns/ statements of current assets filed by the Company with Banks/ Financial Institutions in respect of borrowings
from Banks/Financial Institutions on the basis of security of current assets are generally in agreement with the books of accounts.
55 The Company has not been declared wilful defaulter by any Bank/Financial Institution/other lender.
56 The Company does not have any transaction with companies struck off under Section 248 of Companies Act, 2013/ Section 560
of Companies Act, 1956.
57 There are 4 charges yet to be satisfied with the Registrar of Companies beyond the statutory period as on the date of approval of
Financial Statements.
The Company is awaiting No-objection certificates from concerned Chargeholders for filing the requisite satisfaction of charges
with ROC.
58 The Company does not have any layers prescribed under Clause (87) of Section 2 of the Act, read with Companies (Restriction on
number of Layers) Rules, 2017.
59 No Scheme of Arrangements has been approved by the competent authority in terms of Section 230 to 237 of Companies Act,
2013.
60 The Company's four subsidiaries namely AIS Glass Solutions Limited, GX Sales & Services Limited, AIS Distribution Services Limited
and AIS Adhesives Limited have filed a Composite Scheme of Arrangement before NCLT for their amalgamation with the surviving
entity, AIS Glass Solutions Limited. The filing also includes a proposal for subsequent Capital Reduction in the Transferee Company.
The Composite Scheme of Arrangement, upon its approval by NCLT will have a positive impact on the financial parameters and
operational performance of the merged entity including its functioning thereof.
61 The Company has not advanced/loaned/invested funds(either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with understanding (whether recorded in
writing or otherwise) that the intermediary shall
i) Directly or indirectly lend or invest in other persons or entities identified in any other matter whatsoever by or on behalf of
the company (Ultimate Beneficiaries) or
ii) Provide any guarantee or security or the like to or on behalf of the Ultimate Beneficiaries.
62. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall
i) Directly or indirectly lend or invest in other persons or entities identified in any matter whatsoever by or on behalf of Funding
Party (Ultimate Beneficiaries) or
ii) Provide any guarantee or security or the like on behalf of Ultimate Beneficiaries.
63. The Company does not have any transaction not recorded in the books of accounts that has been surrendered or disclosed as
income during the year, in the tax assessments under the Income Tax Act, 1961.
64. The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
65. Amount in the Financial Statements are presented in ' lakhs except for per share data and as other-wise stated. Previous years
figures have been regrouped/rearranged wherever considered necessary.
As per our report of even date For and on behalf of the Board
For V S S A & Associates Sanjay Labroo Masao Fukami
Chartered Accountants Chairman and Managing Director Deputy Managing Director
(Firm Registration No. 012421N) DIN : 00009629 DIN : 09811031
Samir Vaid
Partner
Membership No.: 091309 Shailesh Agarwal Gopal Ganatra
Executive Director and Executive Director
Place: New Delhi Place: Gurugram Chief Financial Officer General Counsel & Company Secretary
Dated: 14th May, 2025 Dated: 14th May, 2025 ICAI M. No. 091255 ICSI M. No. F7090
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